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A story looking at Joe Biden’s American Rescue Plan took centre stage at the top of a list otherwise dominated by China-Australia relations. Photo: EPA-EFE

Best of 2021: Joe Biden, China-Australia relations dominate most read economy stories of the year

  • A story looking at Joe Biden’s American Rescue Plan took centre stage at the top of a list otherwise dominated by China-Australia relations
  • Global supply chain issues, Chinese students, US-China relations, trade and the closure of a Japanese-themed complex also featured

1. Will Joe Biden’s US$1.9 trillion ‘American Rescue Plan’ be a boon for China, or could excessive liquidity lead to financial trouble?

(Orange Wang and Amanda Lee – January 15, 2021)

  • Latest US coronavirus stimulus package would put even more liquidity into global economy, and much could end up in China, where investment returns are promising

  • Analysts say US president-elect’s proposal could further boost Chinese exports, but they also warn of hot money inflows creating dangerous asset bubbles

US President-elect Joe Biden’s newly outlined US$1.9 trillion stimulus package looks to have global implications – prompting China’s central bank to call attention to growing external risks to its economy and that of the world at large.

04:33

As Biden enters White House, world leaders express ‘relief’ and welcome ‘friend’ and ‘mate’ back

As Biden enters White House, world leaders express ‘relief’ and welcome ‘friend’ and ‘mate’ back

If Biden’s plan is successful in spurring American growth, analysts say it could eventually increase already strong US demand for Chinese products. But the People’s Bank of China (PBOC) is taking a more cautious outlook.

Responding to questions about the potential impact on China of Biden’s proposed aid package, Chen Yulu, deputy governor of the PBOC, said on Friday that the central bank must stay vigilant as it aims to “strictly prevent and control external financial risks”.

Read the full story here.

2. China container maker reaping rewards as Suez Canal blockage adds to global shortage, demand set for record high

(Sidney Leng- March 31, 2021)

  • China International Marine Containers (CIMC) has seen the price of their 20-foot standard container (TEU) more than double from a year earlier to above US$3,500

  • The blockage of the Suez Canal by the Ever Given ultra-large container ship has created a backlog of hundreds of vessels, which is set to further exacerbate global container shortages

Worsened by the recent Suez Canal blockage, global demand for containers could hit a historic high this year, further pushing up costs of shipping, according to the world’s largest container manufacturer.

During the coronavirus pandemic, the price of a 20-foot standard dry storage container (TEU) more than doubled from a year earlier to above US$3,500, and it is not expected to fall much for the rest of year, as demand for the containers and the cost of the raw materials needed to build them remains high, said Mai Boliang, chief executive of China International Marine Containers (CIMC), which produces around half of world’s containers.

01:30

Giant cargo ship causes marine traffic jam by blocking Egypt’s Suez Canal

Giant cargo ship causes marine traffic jam by blocking Egypt’s Suez Canal

“We have full orders for the first half of 2021, and expect the demand for containers to set new records this year. The latest blockage at the Suez Canal could worsen the shortage of containers for a longer time,” said Mai on Tuesday.

Read the full story here.

3. China-Australia relations: lobster exporters look to ‘reboot’ in alternative markets after years of relying on Chinese demand

(Su-Lin Tan- April 22, 2021)

  • Australia’s annual export of roughly 11,000 tonnes of live rock lobsters came to a halt when China unofficially banned them last year amid trade woes

  • Following their 2015 trade agreement, most of Australia’s rock lobster supply started going to China, but now ‘re-engaging old markets again will take time’

South Australian rock lobster fisher and exporter Andrew Ferguson has more time for marketing these days.

Earlier this month, he launched a Chinese social media page on WeChat for his lobster business, Ferguson Australia, to reconnect with his long-time Chinese clients with whom he had no dealings for a number of months.

One year of China-Australia trade tensions

Up until the coronavirus outbreak at the start of last year, Ferguson was exporting about 450 tonnes of live southern rock lobsters to China a year – a trade he had finessed for three decades.

Read the full story here.

4. Chinese graduates lament Western degrees no longer a fast track for top jobs

(Cyril Ip- November 27, 2021)

  • As Chinese universities climb up world rankings, Western degrees are not as prized by employers as they once were, according to overseas graduates

  • Hiring departments are often more familiar with elite Chinese universities and certain professions require strong local networks, young jobseekers say

As degrees from overseas universities lose their competitive edge in China, graduates returning for work are getting mixed signals from employers, with some concerned the job market favours candidates who obtained local qualifications, despite an enduring “West is best” mentality in certain parts of society.

03:22

Crackdown on private tutoring leaves industry, students and parents drawing a blank

Crackdown on private tutoring leaves industry, students and parents drawing a blank

The total number of Chinese nationals studying overseas in 2019 was 703,500, according to the Ministry of Education. In the 2019-20 academic year, China sent more than 100,000 new university students to Britain alone, marking a 20 per cent increase from the previous year, according to the England-based Higher Education Statistics Agency.

While Britain remains a popular destination for Chinese students from relatively well-off households, long-held assumptions that Western graduates are better equipped with social and language skills, and therefore more sought after in China’s job market, are starting to be eroded, experts and young jobseekers say.

Read the full story here.


5. China-Australia relations: breaking free of dependency on Australian iron ore would take years, but where is China looking?

(Su-Lin Tan- January 13, 2021)

  • China has interests in overseas mines with tonnes of iron ore reserves, yet most of it remains inaccessible amid bureaucratic wrangling and limited capital

  • Using more scrap steel is also an option for diversifying China’s iron ore supply, but this too is not without its hurdles and limitations

Brazilian port operator Grao Para Multimodal’s executive director, Paulo Salvador, knows there is plenty of untapped high-grade iron ore in northern Brazil, but a mix of bureaucracy and limited capital have stymied efforts to begin production for years.

Across the states of Para, Piaui and Tocantins, there are at least three mines amounting to nearly 10 billion tonnes of iron ore reserves ready for production, but they continue to sit idle, he said, adding that those deposits are only the tip of the iron ore iceberg in Brazil.

01:15

China-Australia trade: Beijing set to ban nearly US$400 million worth of Australian wheat imports

China-Australia trade: Beijing set to ban nearly US$400 million worth of Australian wheat imports

With commercial will and financial resources, however, enough iron ore could be produced from these mines to rebalance the market that is seeing record-high iron ore prices, and to satisfy China’s demand for the metal, according to Salvador. There are plenty of raw materials to go around, but the key is extracting them, he said.

Read the full story here.

6. China shuts Japanese-themed complex after just 2 weeks over online backlash, ‘sensitive’ date concerns

(He Huifeng- September 3, 2021)

  • The Tang Little Kyoto project, which is located in Dalian’s Jinpu New Area, was opened two weeks ago and had proved popular with domestic tourists

  • In October 2020, the local government in Guangdong closed a similar project as it needed to be ‘corrected and renamed’

A Japanese-themed cultural and residential project in the city of Dalian in northeast China has been closed after just two weeks, with suggestions it is related to a sensitive date in history prior to the second Sino-Japanese war.

02:13

Shinzo Abe, Japan’s ex-leader says Tokyo and Washington will stand by Taiwan, angering Beijing

Shinzo Abe, Japan’s ex-leader says Tokyo and Washington will stand by Taiwan, angering Beijing

Videos and images have emerged on social media in China of the Tang Little Kyoto project being closed as of Thursday following instructions from local authorities.

It recreates a Kyoto-style townscape and had proved popular among domestic tourists who are unable to travel due to ongoing coronavirus-related restrictions.

Read the full story here.

7. US exports to China grow at ‘expense’ of Australia after Beijing’s trade ban

(Su-Lin Tan- May 19, 2021)

  • Following Beijing’s ban on a range of Australian products, the US has been steadily ‘backfilling’ the void left by its ally

  • Political observers say the US will prioritise its own economic needs ahead of its allies, including Australia, despite close ties

US exports to China of wine, cotton, log timber and wood have increased over the past year amid a block by Beijing on the same products from Australia, trade data shows.

Exports of American coal have also risen since February after Australian shipments of the raw material were banned in October last year.

According to some analysts, the trade data suggests the United States is prioritising its own economic interests over its ally’s, despite a promise from US Secretary of State Antony Blinken last week that Washington would not leave Australia to face economic coercion from Beijing.

Read the full story here.

8. China-Australia relations: Beijing slams Canberra for ‘politicising’ canned US$230 million deal on national security grounds

(Su-Lin Tan- January 12, 2021)

  • State-owned China State Construction Engineering Corporation has withdrawn its offer to buy Probuild

  • The sale was expected to be blocked by Australian Treasurer Josh Frydenberg and the Foreign Investment Review Board (FIRB) due to national security concerns

State-owned China State Construction Engineering Corporation has dropped its bid for the Australian builder of the tallest residential tower in Sydney, Probuild, after indications that Australian Treasurer Josh Frydenberg would block the deal on national security grounds.

09:20

Trade ‘only one part of the battle‘ in China-Australia dispute, says legal expert Bryan Mercurio

Trade ‘only one part of the battle‘ in China-Australia dispute, says legal expert Bryan Mercurio

This did not escape Beijing’s attention, and on Tuesday China’s Ministry of Foreign Affairs cautioned Canberra not to “politicise” business deals and jeopardise long-standing commercial relationships, as well as agreed-upon free trade between the two countries.

Probuild’s South African parent company, Wilson Bayly Holmes – Ovcon (WBHO), said in a statement that China State Construction Engineering Corporation had walked away from its unsolicited proposal to pay a reported A$300 million (US$231 million) for its 88 per cent stake after receiving communications from Australia’s Foreign Investment Review Board (FIRB) and Frydenberg.

Read the full story here.

9. US-China relations: Beijing’s plan for aviation supremacy faces bumpy ride as American export controls show no signs of easing

(Amanda Lee- March 28, 2021)

  • Since taking office, the Biden administration has not loosened buying restrictions on US aviation products imposed on China

  • As a result, China’s plan to accelerate development of its aviation and aerospace industries faces enormous challenges, analysts say

China’s plan to become a powerhouse in civil aircraft manufacturing could be derailed by US export controls on aviation products, as tension between Beijing and Washington shows no sign of easing despite a new administration in Washington.

What is China’s home-grown C919 aeroplane, and why is it important?

A trade war between the world’s two biggest economies has morphed into a battle for tech supremacy that has spilled over into the aviation sector in the past two years.

Amid fears that US global competitiveness could be compromised and critical technology could fall into the hands of the Chinese military, Washington has targeted Chinese companies, including many in the aerospace industry, by restricting them from buying US-made products.

Read the full story here.

10. China-Australia relations: bans on Australian imports ‘beginning to bite’ as commodity exports fall

(Su-Lin Tan- January 8, 2021)

  • Australia’s overall exports, including those to China, rose slightly in November but iron ore and coal exports to China both fell

  • Coal exports, which has been unofficially banned by China, fell to their weakest level since 2016, with total exports to China down 6.4 per cent compared to a year earlier

Australia’s major commodity exports to China sank in November as Beijing’s trade restrictions hit home, although the impact of the slowdown was cushioned by redirected sales to other countries.

07:55

Australia ditched diplomacy for ‘adversarial approach’ to China and ‘a pat on the head’ from US

Australia ditched diplomacy for ‘adversarial approach’ to China and ‘a pat on the head’ from US

Australia’s overall exports, including those to China, rose slightly in November as a result of an increase in non-volatile gold exports, but iron ore and coal exports to China both fell 2.2 per cent and 3.6 per cent, respectively, compared to October.

Despite record iron ore prices in the past few months, the value of iron ore exports fell, indicating the volume of shipments would have decreased. According to the Australian Bureau of Statistics, the quantity of iron ore shipped to China in November fell 7 per cent compared to October.

Read the full story here.
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